Executives in both the music and newspaper industries have compared their digital transformations to trying to push their businesses through a garden hose—they have struggled mightily to sustain their businesses as they learned to monetize IP-based distribution of content. And there is a belief, finally reinforced by real-world business models like Pandora and Spotify, that there is, in fact, a spigot on the other side. Revenue growth will once again be realized in these media sectors disrupted and transformed beyond all recognition by the Internet. We may never see margins get anywhere near where they used to be, but there will be real monetization, nonetheless.
In this informative article, Frankel quotes Vindicia CEO Gene Hoffman on Rule #5: How the digital consumer pays for services differently.